Features

Twinlab Reformulates its Business for a New Generation

As the company celebrates its 50th anniversary, a new CEO spearheads advancement.

By: Lisa Olivo

Nearly five decades ago, a father of two sets of twins embarked on a modest business venture from his garage. In 1968 David Blechman, a pharmaceutical salesman, observed people were not consuming an adequate amount of protein for optimal health, so he developed a supplemental liquid protein by the name of Liquid P, which he sold to specialty health food stores. As interest in the product piqued, he expanded his line to include an array of vitamins, minerals, herbs, and teas.

Fast forward to 2017, Mr. Blechman’s plan spawned a leading brand within the dietary supplement industry. Now approaching its 50th anniversary, Twinlab is a known and noteworthy brand within the category, bringing many “firsts” to the market: from liquid protein, to CoQ10, to single-dose single-ingredient vitamins, minerals, and amino acids.

Today Twinlab is part of a dynamic family of brands under the Twinlab Consolidation Corporation (TCC) umbrella, including sister brands such as antioxidant and beauty supplement category leader Reserveage Nutrition; Alvita teas, established in 1922 as a single-herb tea line; and NutraScience Labs, a nutritional supplement contract manufacturing business.

Twinlab has more than 250 employees with locations in Florida, New York, Michigan, and Utah. The organization’s award-winning 168,000 square foot manufacturing facility located in American Fork, UT, is GMP-certified, confirming its high quality standards and procedures.

Offering a broad range of vitamins, minerals, and sports nutrition products under its namesake brand, Twinlab also manufactures and sells supplements for other companies, such as the Metabolife line of diet and energy products, and Alvita teas.

Commenting on Twinlab’s legacy, Naomi Whittel, CEO of Twinlab Consolidated Holdings, Inc. stated, “The TCC family of brands have a combined experience of 160 years in the naturals industry and is proud to be an organization that sells brands and products in more than 55 countries on five continents. It is a credit to the work that we do and our continued value within the marketplace.”

Company Developments
In 2016, TCC earned $86.3 million in net sales, up 6% from the previous year. Looking ahead, the organization aims to continue this positive momentum. Ms. Whittel identified regaining Twinlab’s leadership position in the industry as a top company goal, which the company intends to do by championing the importance of science and efficacy. She stressed that above all, the corporation strives to provide life-changing benefits to individuals seeking a safe and effective way to enhance their health, while playing a leading role as an advocate for the industry.

Recently, several key events have propelled the company on this mission, starting with the appointment of Ms. Whittel herself. In March of 2016 she took the helm, with part of her new responsibility becoming leading the organization in its integration efforts, striving to become “one team with one dream.”

Since joining the organization, Ms. Whittel and her team have set out to leverage the respective strengths of each of the TCC brands. Twinlab’s manufacturing capabilities are a key asset, while Reserveage’s expertise lies with its strong sales and marketing teams. Combining the two brands, along with the contract manufacturing excellence of NutraScience Labs “provided a great platform to build from,” she explained. “The organization realigned, instituted lean methodologies to drive efficiencies, and reallocated costs to areas that would improve the foundation, performance, and growth prospects.”

This realignment has allowed the Twinlab brand to launch its most significant innovation in recent years—the Ocuguard Blutein line of products. “With eye health becoming a growing concern in the United States and an issue that is just now beginning to receive renewed focus as our digital device usage has grown, the Twinlab Blutein line of products are a perfect example of our commitment to science and our innovation efforts as we look to tackle the health challenges of the future,” commented Ms. Whittel. Pointing to the growing need for a nutritional focus on eye health, she cited statistics indicating the average American adult spends 11 hours a day in front of an electronic screen, cell phone, tablet, computer, or TV, while children are exposed 6.5 hours. Even toddlers receive an average of 2.5 hours of damaging blue light daily.

“A major side-effect of blue light exposure is Computer Vision Syndrome, which has replaced carpal tunnel as the #1 workplace complaint,” she observed. “In addition, blue light exposure has been correlated with earlier onset of macular degeneration—down from age 65 to 60 years.”

The Twinlab Blutein line of products includes Ocuguard Blutein Protection, a formula featuring the clinically tested Lutemax 2020 to support healthy eye function, along with antioxidants blueberry extract and fucoxanthin; Ocuguard Blutein Performance, a supplement aimed to support faster mental processing, focus, and reaction; and Ocuguard Blutein Chew to provide extra protection for young and maturing eyes from blue light and help minimize eye fatigue.

The company has also set its sights on expanding its reach internationally, most recently seeking entry into China’s dietary supplement market. The company has earned six “blue hats” or “government approved products” registered to be sold within the country. “This is an extraordinary opportunity for us to expand our global reach and embrace the health and wellness ideals inherent to the Chinese culture,” said Ms. Whittel. ”We have been diligently working to develop our China business through the assistance of the American Consulate.”

A team from Twinlab visited China for a discovery mission, establishing goals to determine the company’s business model and to find a partner (or partners) to help it succeed within this growing and evolving marketplace. Ms. Whittel said Twinlab learned a great deal from the outreach, and is poised for a launch based on the company’s findings within Q4.

Likewise, on the home front Twinlab is making inroads to raise awareness for the safe and responsible use of dietary supplements, extending the company’s message to local government officials. “In August 2016, we became the first nutrition company in Utah to proudly host the attorney general, Sean Reyes, in our plant to share our quality standards and partner with him to elevate the conversations about our industry,” Ms. Whittel explained. “Sharing the attorney general’s commitment to the highest standards of professionalism, transparency and trust—we are committed to rolling up our sleeves and doing things the right way.”

Trust & Transparency
Maintaining the trust of the public is a key component of elevating the Twinlab brand. “We all know of the opportunistic element in our industry because of the low barriers to entry, and we are impacted every day by those looking to make a quick buck,” lamented Ms. Whittel. “With consumer trust just starting to build, it is even more important now to emphasize that we are an industry based in science and nature, and that we have the capability to positively impact people’s health and lives. More importantly, we have a responsibility to do so. We think about the millions of individuals who purchase a product from our family of brands; this is a huge responsibility and we take it very seriously. This is why we invest in science and transparent sourcing; focusing on seed-to-shelf initiatives, and transparency.”

This, she said, is what drives Twinlab to seek out more effective ingredients, sustainable sources, and clear and meaningful results to the consumer. “There are fewer and fewer nutritional brands that make their own products and Twinlab remains an exception. We’re proud of our meticulous supply chain, which produces hundreds of premium products made in the USA and are used by millions of people every year worldwide.”

Discussing the company’s commitment to scientific excellence, Ms. Whittel pointed to its scientific advisory board , which is comprised of world renowned experts who work with in-house research and development teams to create new, innovative products, simultaneously ensuring that these products are safe, effective, and of the highest quality. “These doctors and researchers who make up our scientific advisory board are devoted to researching and understanding the importance of nutrition for a healthy life, and Twinlab is committed to bringing that science and innovation to our partners and individuals looking for solutions to their health and nutritional needs,” she said. One of the newest members of the board is James Stringham, PhD, research professor at the University of Georgia, who has extensively studied the benefits of the nutrient lutein and helped develop the Blutein line.

Evolving Market
Part of Twinlab’s restructuring lies in analyzing new trends within the marketplace, and considering how the company can best serve its evolving customer and consumer demands.

According to Ms. Whittel, these last 12 months have been dedicated to this transformation, with specific focus on improving service levels to customers, and prioritizing sales and marketing efforts around top selling products. “As part of this rebuilding, we revisited our history to develop a plan for the future based on the best of our roots,” she said. “Namely, the vision to reemerge as the innovation leader who brought so many firsts to the health and wellness space.”

From Twinlab’s vantage point the market is in an exciting place these days. “There are three macro dynamics at play that are really interesting,” said Ms. Whittel. “First, millennials are a fast-growing consumer group looking for different types of solutions that fit their lifestyle. They also have different expectations of companies and the impact we have on the world through our business practices.” Next, she pointed to changing retail dynamics that require the company to adjust its strategies, while the revolution in personalized data and tracking is also spurring consumer engagement.

These consumer shifts have led to a challenging, but innovative time for the dietary supplement industry. “Now, more than ever, we are seeing a big change in the way companies are beginning to work together and collaborate, which is transformative for our industry. There is a focus on the seed-to-shelf process, education for the consumer, which supports transparency initiatives, and a focus on sustainability and conscious practices.”

Ms. Whittel recently participated in the documentary, Prosperity, which focuses on a growing movement in business to change the world for the better. “These companies redefine success as more than profit,” she said. “Fueled by consumer demand and a significant shift in consciousness, these companies forge the power of profit motive with a desire to do good. Profit remains a big criterion for success, but of equal importance are creating shared value, contributing to economic development, and bettering the lives of people, our community, and our planet.” This shifting industry perspective gives her hope for the future, and she said she looks forward to “evolving for the better of our consumers, our partners, our employees, and our communities, both local and global.” 

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